Vietnam will be able to tame inflation below double-digit levels and achieve GDP growth of 5 per cent-5.5 per cent, Planning and Investment Minister Vo Hong Phuc told on May 29.
Between January and May, inflation has surged 2.12 per cent, and with this pace, Vietnam will likely cap inflation at 6 per cent-7 per cent in the six remaining months, and below double-digits this year, Minister Phuc emphasized.
“To combat possible inflation return, the government will focus on effectiveness of its investments,” Minister Phuc noted.
“GDP growth of 5 per cent is quite achievable,” Phuc said, elaborating the forecast GDP is based on careful calculations.
The economy will grow 3.8 per cent-4.2 per cent this quarter, 5.6 per cent-6.5 per cent in the third quarter and 6.8 per cent-7.4 per cent in the last quarter, Minister forecast.
The MPI also forecast that agricultural production will rise 3 per cent as usual, industrial production will grow 5 per cent after expansion of 5.4 per cent in May.
The country’s state budget deficit is projected to be 8 per cent of its GDP depends on prices of world oil prices.
If oil prices are US$60/barrel, deficit will be VND116.3 trillion, or 6.4 per cent of GDP; if oil prices drop at US$50/barrel, deficit will be VND130.3 trillion, or 7.2 per cent and if oil prices slump to US$40/barrel, deficit will widen to VND150.3 trillion, or 8.3 per cent, the MPI predicted. (Vietnam Economic Times, Financial Investment)
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